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Apple buys Tesla and a solar flare wipes trillions from the economy: 10 outrageous predictions for 2019

Saxo Bank's annual series of outrageous predictions is here with this year's theme covering a world that is increasingly saying "enough is enough."

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  • Saxo Bank annually publishes a list of outrageous predictions for the year ahead.
  • This year's forecast features recessions in two economic heavyweights, and the possibility of solar-related chaos.
  • The predictions include a surprise potential buyer to take Tesla private.

Saxo Bank's annual series of outrageous predictions is here with this year's theme covering a world that is increasingly saying "enough is enough."

The Danish firm has compiled 10 possibilities with a low chance of happening, but that challenge investors to think outside the box on risk within financial markets and the world more generally. While these predictions are not Saxo's official expectations for the year ahead, they point out some of the risks that have been unallocated by the market so far.

1. EU announces a "debt jubilee"

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Saxo said that

2. Apple "secures funding" to buy Tesla at $520/share

Elon Musk's controversial tweet suggesting that Tesla had secured funding at $420 a share drew the ire of investors and later the SEC. Saxo playfully suggests that Apple, rather than Saudi Arabia, could be a new option for the electric vehicle maker.

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Saxo points out that Apple is keen to move deeper into consumers lives and suggests that automobiles could be the next frontier as vehicles become increasingly connected to technology. A 40% premium on Tesla's share price could make another Musk "funding secured" tweet a possibility in 2019.

3. Trump tells Powell: "You’re fired"

Former Apprentice star and current US President Donald Trump has made no secret of his displeasure at the Federal Reserve in recent months and Saxo reckons Jerome Powell could hear the immortal words "you're fired" in 2019.

December's proposed rate hike could send equity markets off a cliff in Q1 2019, according to Saxo's outrageous predictions, giving Trump the opportunity to bring in the dovish

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4. Prime Minister Jeremy Corbyn sends the pound to parity with the dollar

One of Saxo's outrageous predictions is that 2019 sees Labour sweep to a large general election win and sets off on a "

5. A corporate credit crunch pushes Netflix into trouble

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GE's debt struggles in 2018 have been well documented with Saxo predicting more companies could enter the vortex of a corporate credit crunch with Netflix one of those affected.

Investors start to fret about Netflix's excess leverage

6. Australia's central bank launches QE to solve the housing bust

7. Germany enters recession

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Not content with financial turmoil in just Australia, Saxo also suggests Europe's largest economy could slip into recession in 2019, with weaker car sales dragging the country into trouble.

Saxo points out that by 2040 55% of all new car sales will be electric vehicles and that Germany, a global automotive leader, is well behind the trend. A recession as early as Q3 next year could be on the cards if sluggish car sales continue, according to Saxo.

8. A solar flare creates chaos and inflicts $2 trillion of damage

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Like something out of a flimsy Hollywood script a massive solar flare could wreck Western Hemisphere satellite technology in 2019 and cause around $2 trillion in damage, according to Saxo.

A new solar cycle kicks in during 2019 and excess radiation could have devastating effects if the sun decides to rain chaos on its intergalactic neighbor.

9. A Global Transportation Tax is enacted as climate panic spreads

Another insanely hot summer in Europe could make the aviation and shipping industries the targets of a new tax on transportation to limit the damage of climate change in 2019.

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Saxo points out that the industries currently have substantial tax benefits which could see them hit by a new Global Transportation Tax (GTT).

In Saxo's prediction, the tax is eventually backed by China and reluctantly the US, sending aviation and other transportation stocks lower despite higher ticket prices and maritime freight prices.

10. IMF and World Bank announce intent to stop measuring GDP, focus instead on productivity

In an interesting development which could have far reaching consequences Saxo suggests that the IMF and World Bank could turn their back on GDP in 2019, and instead use productivity as a growth measure.

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